US crude futures fall $2.77/bbl on stock market sell-off

06 July 2012 21:00[Source: ICIS news]

HOUSTON (ICIS)--NYMEX light sweet crude (WTI) for August delivery settled at $84.45/bbl on Friday, down $2.77 versus the previous close, tracking a sell-off in the stock market in response to a US Labor Department’s June jobs report showing a less-than-expected expansion of nonfarm payrolls.

Fading hopes that the US Federal Reserve will introduce a new round of stimulus measures also contributed to the market’s concerns.

In the currency markets, the euro fell to a 2-year low against the dollar and various commodities lost ground on expectations of declining demand for raw materials as the global economy contracts.

Downside momentum also triggered technical sell-stops, driving August WTI down to establish an intra-day low of $84.02/bbl, down $3.20/bbl, before rebounding.

ICE Brent for August delivery bottomed out at $97.86/bbl before settling at $98.19/bbl, down $2.51.